Is Cryptohopper Legal in UK? Is Cryptohopper Safe?
Choosing a trustworthy cryptocurrency exchange is crucial as it directly impacts the safety and security of your digital assets. The high risk of scams in this area necessitates extreme caution from users.
Our analysts have noticed a growing interest in Cryptohopper services among users in the UK. However, questions remain regarding its safety and legal status within the UK. Traders Union experts have addressed this concern by crafting a detailed review that explores both the pros and cons of using Cryptohopper.
So, let us tell you if Cryptohopper is allowed in the UK and if it's safe to use for trading.
Is Cryptohopper legal in UK? Does it have a license?
Currently, the Cryptohopper is not regulated at the government level, which remains a common scenario in the cryptocurrency market. However, such platforms generally fall short compared to exchanges with Tier-1 regulation, which signifies oversight by top-tier financial authorities such as the FCA (UK), SEC (USA), or ASIC (Australia), ensuring strict compliance with security and operational standards. We compared Cryptohopper with two Tier-1 regulated exchanges to help you make an informed choice
| Cryptohopper | Bybit | MEXC | |
|---|---|---|---|
Tier-1 regulation |
No |
Yes |
No |
Government-regulated |
No |
Yes |
No |
Successful hacks |
No |
Yes |
No |
Cold wallet storage |
No |
Yes |
Yes |
Investor protection fund |
No |
Yes |
No |
2FA |
No |
Yes |
Yes |
Verification (KYC) |
No |
Yes |
Yes |
Open an account |
|
|
|
Short summary about the Cryptohopper exchange
Cryptohopper is a multi-purpose platform that combines its hub functions, copying service, social trading, and an investment portfolio management service. The Cryptohopper terminal trades in Bitcoin, Ethereum, Litecoin, and dozens of other cryptocurrencies and tokens, which are presented on partner exchanges. The one-of-a-kind system stands out for the presence of free-of-charge (the first 7 days) trading bots where you can create and test your bots. The platform also provides an emulator of exchange strategies. There is also an in-depth training system.
| 💰 Account currency: | Most |
| 🚀 Minimum deposit: | $1 |
| ⚖️ Leverage: | No |
| 💱 Spread: | No |
| 🔧 Instruments: | Cryptocurrencies, currencies |
| 💹 Margin Call / Stop Out: | No |
Cryptohopper Pros and Cons
👍 Cryptohopper Pros:
•cryptocurrencies can be traded on any of the partner exchanges from Cryptohopper’s terminal;
•no fees or fixed payments for using the service;
•profitable partnership and investment program;
•service for copying transactions and auto-trading bots;
•a vast selection of instruments;
•synchronization of accounts on diverse exchanges;
•large trading volumes.
👎 Cryptohopper Cons:
•free mode is extremely limited in functionality.
Rules and Regulation
Licensing in the UK
Exchanges in the UK must be approved by the FCA and meet the requirements regarding anti-money laundering and combating the financing of terrorism (AML/CFT). These rules came into effect in 2020. To obtain a crypto license in the UK, a company must:
- register;
- open an account with a British bank;
- open an office;
- observe AML/CFT policies;
- establish a Know Your Client (KYC) procedure;
- have an internal audit service.
Investor protection in the UK
Besides the FCA, investor protection in the UK is ensured by the Financial Services Compensation Scheme (FSCS), under which users get compensation in case of a company’s bankruptcy.
Taxation in the UK
In the UK, cryptocurrency is not considered to be a payment method, but is classified as an asset. It means that profits from cryptocurrency trading are subject to a 10% or 20% capital gains tax (CGT).
Do I recommend using Cryptohopper in the UK?
The Cryptohopper cryptocurrency exchange will not be a good choice for traders from UK. The company does not hold a license, although the main reason for that is that the financial regulator of the country does not license crypto exchanges in general. There have been security-related incidents on the platform, and the accounts are not protected in the best possible way. Also, users periodically have questions about the quality of the exchange’s operation.
FAQ
Can I work with crypto exchanges considering that they don’t have a license in UK?
The fact that a crypto exchange does not have a license doesn’t mean that traders from UK will have problems while working with it. Cryptocurrency exchanges are not subject to licensing in many countries, while there are many exchanges with good reputation. Assess the available information about the exchange and check its reputation.
What security methods for account protection do crypto exchanges employ?
Cryptocurrency exchanges may offer various security methods. These include the two-factor authentication, first and foremost, and also such methods as a security question, additional passwords, etc.
Can an exchange that has had a security-related incident in the past be trusted?
You need to check whether such incidents were regular. If it was one episode several years ago, while the reputation of the exchange is good, you can work with such an exchange.
Should I work with an exchange if I have doubts about its reputation?
No. Always choose the cryptocurrency exchanges that have a good reputation.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.